Dissolving a Company in Kenya
Dissolving a company in Kenya is the formal process of ending its legal existence and removing it from the official register. The procedure depends on the type of company and its financial position, and it must follow the Companies Act 2015 and Insolvency Act 2015.
Types of Dissolution
Voluntary Dissolution
Initiated by shareholders or directors when the company has achieved its goals or is no longer needed. Requires a special resolution, filing documents with the Registrar of Companies, and publishing a notice in the Kenya Gazette. If no objections arise within three months, the company is struck off.
Involuntary Dissolution
Triggered by government authorities due to non-compliance, such as failure to file annual returns. May require liquidation before removal from the register.
Liquidation
If a company has debts or assets, liquidation is necessary before dissolution. This involves selling assets, paying creditors, and distributing any remaining funds to shareholders.